Exploring Four Eight Types of Entrepreneurship

Exploring Four EightTypes of Entrepreneurship

Laurie BarkmanSmallDotBig LLC | Stony Hill Advisors | Succession Stories Podcast

CMU Connects Series, Sept. 22, 2021

● TPR MBA '99● Adjunct Professor of Entrepreneurship● 5 corporate, 3 startups ● CEO with an exit● Marketing + strategy executive● Founder, SmallDotBig - Pre-M&A Value Building● Partner, Stony Hill Advisors - M&A for lower middle market● Host, Succession Stories Podcast

Meet Laurie Barkman

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Today’s agenda

● 8 Types of Entrepreneurship ● Choosing a Path● Q&A

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“Success is liking yourself, liking what you do, and liking how you do it.”- Maya Angelou

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600 million

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Entrepreneurs in the world

Source: SBA

20%6

of new businesses fail during the first two years

Source: Bureau of Labor Statistics

1. Small business

2. Large company

3. Scalable startup

4. Social

5. Innovative 7

6. Hustler

7. Imitator

8. Buyer

Different types of entrepreneurship

Small Business Entrepreneurship

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90%of US entities are small and medium sized businesses

9Source: SBA

Small Businesses < 500 employees

● 30.7 million small businesses in USA

● Account for 64% of new jobs created

● 550,000 new small bizlaunch monthly

● Create 2 out of 3 new jobs

● Over half of Americans own or employed by a small business

10Source: US Small Business Administration

Motivations + Incentives

● Be own boss● Make a profit that supports

their family and modest lifestyle

● High personal risk● Typically hire local

employees and/or family members

● Retail, real estate, trades, services, consultants, professionals

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Small Business Entrepreneur

Large Company EntrepreneurshipLarge company > $100m revenue

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● Corporate lifecycle ● Executive sponsorship● Focused teams● Incremental to

transformative innovation

● Corporate Venture● Build - Buy - Partner

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Corporate Startups+ Innovation

Teams

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Gustavo LopezGeneral Manager

Mary Beth GreenChief Innovation Officer

Motivations + Incentives

● Innovators motivated to change the world, fix problems, and/or create new and better things

● Rewarded with increased professional freedom, promotions

● Low to moderate risk● Financial incentives vary,

typically different risk/reward model than a traditional startup 16

Corporate Entrepreneur+ Intrapreneur

Scalable Startup Entrepreneurship

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2729# companies raising first-time funding in 2019,

second highest amount of capital invested on record

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$11.3B

Source: NVCA.org

ScalableStartups

● Look for market needs or problems to solve and create solutions

● Funding from venture capitalists

● Hire specialized employees

● Technology-focused ● Seek rapid expansion and

big profit returns

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Tope AwotonaCEO + Founder

Don CharltonFounder

Motivations + Incentives

● Achieve vision● High personal risk● Get rich, personal

financial freedom

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Scalable StartupEntrepreneur

Social Entrepreneurship

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Social Enterprise

● “Business for good”

● Mission to solve social problems or affect social change

● Combines charitable consciousness with business strategy

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Blake MycoskieFounder

Jessica JackleyCo-Founder

John MilesCEO & Co-Founder

Motivations + Incentives

● Making a difference is at the heart of being a social entrepreneur

● Care deeply about more than earning a profit

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Social Entrepreneur

Innovative Entrepreneurship

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Bill GatesMicrosoft

Steve JobsApple

Sara BlakelySpanx

Motivations + Incentives

● Take ideas and turn into business ventures

● Aim to change the way people live for the better

● Very motivated, passionate people

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Innovative Entrepreneur

Hustler Entrepreneurship

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Gary “Vee” VaynerchukVayner Media

Motivations + Incentives

● Start small, bootstrap their way to success

● Amazing work ethic● Seem to explode onto

the scene● Willing to do what it

takes 31

Hustler Entrepreneur

ImitatorEntrepreneurship

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Sam WaltonWal-Mart

Barbara CorcoranThe Corcoran Group

Herman CainGodfather’s Pizza

Motivations + Incentives

● Find business models and industries with potential

● Learn from past mistakes

● Capitalize on measurable demand and customer base

● Highly determined 34

Imitator Entrepreneur

Buyer Entrepreneurship

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Chris CynkarFranchise Consultant

Len CaricUncle Charley’s

Sausage

Jamie Van BurenGT Entrepreneurs

Motivations + Incentives

● Buy into proven businesses

● Active in operations● Focus on expanding

market share● Moderate risk

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Buyer Entrepreneur

Choosing your pathWhat is motivating you to be an entrepreneur?

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55%Percent of respondents who said the biggest motivation for opening your own business is being your own boss.

39Source: Guidant Financial

Find your fit● who you want to be● what you want to do● how you want to feel● what you want to own● who you want to associate with

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Summary● Consider your strengths, motivations, and fit for the type of

entrepreneur you aspire to be and your risk/reward profile.● Make time to think. Give yourself permission to struggle with the

process.● Be honest with yourself. If it doesn’t feel right to you, it probably

isn’t.● Find good partners and advisors along the way.

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Connect with me

Laurie Barkman

[email protected]/LaurieBarkman

Follow Succession Stories Podcast wherever you listen!

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Q&A